In its first set of quarterly reports, Vodafone Idea posted a challenging set of financials, blaming one-off costs incurred at the time of its creation

Vodafone Idea has posted a net loss of $690 million (49.7 billion rupees) in its first set of quarterly financial results, since its creation in August.

The merger of Vodafone and Idea Cellular earlier this year created India’s biggest telco, with the newly merged entity confirming it has 422 million subscribers across the country.

Vodafone Idea’s board also confirmed that it was exploring the possibility of raising an additional $3.5 billion (250 billion rupees) in new capital to fund its network expansion and 5G initiatives.

Vodafone Idea’s CEO, Balesh Sharma, stressed that the long-term synergies offered by the merger would soon outweigh the initial loss.

“The merger of two large organizations with complementary strengths has opened multiple opportunities to draw synergies across the board. We have set on a strong course with meticulous pre-merger planning and rigorous post-merger execution. In just 75-days of operations, several milestones have been achieved, ahead of expected timeline," he said.

"We are thus well on track to deliver the synergies envisaged at the time of merger. Going forward, we remain focused on accelerating integration momentum for higher synergy realisation; expanding coverage and capacity of our 4G network; providing the best of customer experience to our retail and enterprise customers; and in creating an agile and future-fit organisation. Shareholders’ support along with assets monetisation puts us into a strong position to achieve our strategic intent.”

As well as raising an additional $3.5 billion in capital, Vodafone Idea is also exploring the possibility of selling off its full fibre broadband network infrastructure in order to boost its cash levels.

"Several parties have indicated a potential interest in acquiring the Company’s fibre network, consisting of over 156,000 Km of intra- and inter-city fibre routes. The Company has decided to actively explore a potential sale of these assets to provide further balance sheet flexibility," the company said in statement to the press.

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